○=> Correct answer :
Money in Alex's account after 16 years = [tex]\boxed{\bold{\color{plum}£4347.11}}[/tex]
○=> Steps to derive correct answer :
Money invested by Alex = £3045
Percentage of compound interest per annum = 2.25%
We know that :
[tex]\tt \: \color{hotpink}A \color{plum} = P {(1 + \frac{r}{n} )}^{nt} [/tex]
In this case :
Principal = £3045
Rate = 2.25% = 0.0025
Number of times interest is compounded per year = 1
Time = 16 years
Which means :
Money Alex will have in the account after 16 years :
[tex] = \tt3045 ({1 + \frac{ 0.0025}{1} })^{16} [/tex]
[tex] \color{plum}= \tt £4347.11[/tex]
Therefore, the money in Alex's account after 16 years = £4347.11
